Mexicoś income tax rates personal and corporate income earned in Mexico

Go the following link to read about Mexicoś personal income tax rates on individuals. 

Cabo San Lucas - a Tax Haven?

https://taxsummaries.pwc.com/mexico/individual/taxes-on-personal-income.

Mexican corporations pay a flat rate of 30% of net profit.

Most Mexico dividends and interest paid by banks are taxed at 10% which is the amount the payor withholds when that income is distributed to you.

Need further advice or return preparation  on your US taxes with respect to you rental, business or other income from Mexico?  Email us at 
Mexico -US tax informaton

PAYING TAXES ON MEXICAN RENTAL PROPERTY - FOR NONRESIDENT OWNERS

 Nonresidents of Mexico who own rental property there must pay Mexican income tax and in many

instances Mexican IVA (value added taxes) on their rental income.  Failure to do so can result in huge penalties when caught by the SAT (Mexican IRS).  If you rent out through VRBO or ARBNB they will

pay the taxe for you but if you have a long term rental or do short term rentals on your own, you must file the required tax returns. Now even those with FMM (tourist permits) can get an RFC (tax id number) so they can pay their Mexico income taxes. 

Read more about how Mexico rental taxes work here:http://rentaltaxmexico.com/

We have been assisting Gringos living and owrking in Mexico with their US taxes for over 20 years. Write us for more information:  Kauffman Nelson LLP, Certified Public Accountants  Email us for more information and assistance.

Register in the RFC as a natural person if you are a foreigner - Even if you only have a FMM (tourist visa)

Visit the SAT website to learn how to subscribe for an RFC as a fiscal person as a foreigner .  ( Learn more at SAT website: https://www.sat.gob.mx/tramites/97439/inscribete-en-el-rfc-como-persona-fisica-si-eres-extranjero  If you do not read Spanish use google to translate the webpage for you.   You must have this number if you rent out property you own in Mexico even though you do not have a temporary or permanent resident status.  Many Mexican banks and others are now requiring this number. The process securing an RFC tax number is complex and will require the assistance of a Mexican Notary.

If you rent your casa in Mexico you do own mexican income taxes on your rental income and in some situations Value Added taxes to the SAT (Mexican IRS). This number is required by the SAT.  If you rent through ARBNB or VRBO they have made arrangements to pay the tax for you though you do not have an RFC number and do not file a Mexican tax return.

If you do pay Mexican income taxes on your rental income you do get to claim it as a tax credit against the taxes you pay on your US Income Tax return on that rental income.  Yes your worldwide income MUST be reported on your US income.

How do Mexican rental taxes work?  Go to to learn how to properly handle your rental: http://rentaltaxmexico.com/  Failure to pay the tax can result in huge penalties and interest when the SAT finds you.

We have been helping Americans with their US taxes in Mexico for over 20 years and can help you with the complex international tax issues which may be involved.  We are US CPAs and Attorneys with over 20 years experience each in international taxation.  Email Don D. Nelson, Attorney at Law at ddnelson@gmail.com for more information and for assistance.